I hope you had a good day yesterday, as tech continued to lead and impress before earnings. Today we have $NFLX earnings after hours, which will be the first big tech to announce. Asian markets are in green and futures are flattish. Since the $QQQ were strong yesterday we bought every dip and trimmed on every rip. After such a run I expect today to be a digestion kind of day, and therefore I will be more conservative. I trimmed again most of my stocks in tech as they have out-performed and in my opinion they are due for an inside kind of day. I might be wrong and if I am, after the first minutes of the market opening I will buy back in tiers and trim, no need to have FOMO.
In the past the events in Apple were sold, and therefore I entered with a trailer kind of position before the “Unleashed” presentation, however, when the reaction was positive I added to my position and trimmed into strength. I am still long this stock with a smaller position and it should hold the $145 level for continuation. The fact that the MacBooks are deliverable from next week seemed to have overturned the rumor that Apple has chip problems, and this may have been a factor in the buying program initiated during this event.
This giant showed continuation after its day 1 on Friday and I bought the stock back, trimmed into strength, sold it all when it went red again after one hour of trading, and re-entered it when the $QQQ showed strength. I trimmed at its day high and left a trailer for today. It should hold at $3429 to be buyable, and if it wants to be impressive it has a resistance at around $3497. I also have call spreads for this Friday and for next Friday, after earnings. If it has a day 3 I will get out of my conservative call spreads for earnings to cash in and I will buy some lottos.
The semis have been weak and in a sell program for the past 3 weeks, however, $AMD yesterday was impressive and it gave us a nice red to green kind of trade, which created cash flow. I added to the stock at $111.6 and trimmed in tier systems all the way up to $116, and I left a trailer. Today it might have a digestion kind of day and it should hold at about $114.5, and if it does and it pushes forward towards its all time high of $122.49 I will participate in this move. I also have options for earnings, since I will have no stocks as usual for a binary event.
I hope you participated in yesterday’s action. If you had FOMO you did not get caught in a bear trap, but today it might be a digestion day and therefore I urge patience and for you to stay tactical. The $QQQ is extended here, after a move from the $350s all the way into the $370s, it needs to go side-ways until a next move higher. Don’t get caught in a side-ways kind of move as it can be slightly painful and chop up some of the cash you have accumulated in the past sessions. If there is a move lower you can play around, but don’t ruin this 3 day run by hopping on a carousel for no reason. Less is more.
Have a good day!
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